A golden cross formed on the Chainlink (LINK) four-hour chart a week after its price crashed by almost 45 percent from its record high of $37.07, signaling a bullish revival for the world’s ninth-largest cryptocurrency by market capitalization.
In retrospect, a golden cross appears when an asset’s short-term moving average crosses above its long-term moving average. Ideally, traders treat a crossover between a 50-day MA and 200-day MA as the benchmark indicator to determine their bullish bias. Meanwhile, when an asset’s 20-period MA closes above its 50-period MA, it signals traders about an immediate buying sentiment in the market.
The LINK/USD exchange rate logged the 20-50 golden cross on Tuesday as its bids rose to an intraday high of $30.89. Measuring from its previous bottom, the pair’s move upside brought its price up by 53.24 percent. That followed a minor correction, but the short-term bullish bias looked intact.
LINK found a resistance target near $29.75, which previously capped its breakout attempts on February 24. Nevertheless, the cryptocurrency’s rally this time rode on a flurry of optimistic fundamentals, which may see it break above the price ceiling and target its previous ascending trendline support (in black) as an upside target.
Conversely, a pullback from $29.75 would risk LINK dropping towards its 20-EMA for support, with the 50-SMA as an intermediary downside target. A further slipover could have traders open their short entries towards the previous support target near 22.69.
The rally in the Chainlink markets also appeared as it announced developing an off-chain reporting protocol (OCR) that intends to improve its Oracle network. Excerpts:
‘All nodes communicate using a peer-to-peer network. During the communication process, a lightweight consensus algorithm is run, in which every single node reports its price observation and signs it. A single, aggregate transaction is then transmitted, saving a significant amount of gas.’
Meanwhile, more bullish tailwinds came from BlockFi, a crypto lending firm that announced support for LINK tokens. In doing so, the firm enables LINK holders to deposit their tokens in the BlockFi pool to earn a stable 5.5 percent annual yield. The interests will be paid using the Chainlink tokens.
It’s happening, @chainlink Marines: Starting March 2, you can earn 5.5% APY in crypto on your #LINK with BlockFi. RT to spread the word.
— BlockFi (@BlockFi) March 1, 2021
Founded in 2017, BlockFi already offers similar yield services on different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. It recently paid out more than $20 million in interest on its BTC and ETH deposits.
LINK was trading at 29.28 at this press time.
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